The Company | Investment Highlights
A Diversified Fleet of Power Generation Assets
Diverse group of 23 power projects totaling 1,407 MW (net ownership), located in eleven U.S. states and two Canadian provinces; 21 projects currently in operation (1,327 MW net ownership)
Projects are well diversified based on electricity and steam customers, regulatory jurisdictions, and regional power pools
95% of our power generation is "clean power" (42% renewable and the balance natural gas)
Demonstrated Operating Performance of Projects
- Projects have a demonstrated track record of high availability and reliability
Stable Power Purchase Agreements (PPAs) with Strong, Diverse Utility Customers
Majority of projects sell electricity and steam to utilities and large commercial and industrial customers under long-term PPAs that have expiration dates ranging from 2021 to 2043
Cash flows derived from the sale of electricity under long-term PPAs typically designed to pass through fuel cost fluctuations
Weighted-average remaining PPA term of approximately 4.6 years; managing through near-term PPA expirations and opportunistically seeking to extend PPAs prior to expiration at select projects
Diversified customer base, consisting mostly of regulated electric utilities with investment-grade credit ratings from Standard & Poor's (S&P)
Strong In-House Operations and Partnerships with Experienced Operators
- Approximately 75% of our projects are operated and maintained by our seasoned team at Atlantic Power
Delivering on Balance Sheet and Cost Reduction Priorities
Reduced consolidated debt by approximately $1.3 billion since year end 2013, and reduced debt at equity-owned projects by more than $80 million
Cash interest savings associated with this debt reduction and re-pricings of our credit facilities are approximately $93 million on an annualized basis
Leverage ratio of 3.6 times at December 31, 2020; amortizing term loan structure results in additional deleveraging over time
Stable liquidity of approximately $142 million
Reduced overhead costs by approximately 54% from 2013
Balanced Approach to Capital Allocation
Since December 2015, have invested more than $80 million in the repurchase of approximately 37.0 million shares at an average price of $2.15 per share
Since June 2017, have invested US$25.5 million equivalent in the repurchase of approximately 2.1 million preferred shares at an average discount to par of 37%; implied after-tax returns ranging between 10 and 12%
In 2018 and 2019, invested approximately $45 million to acquire the remaining 50% interest in Koma Kulshan hydro facility, two biomass plants in South Carolina and equity interests in two biomass plants in Michigan and North Carolina; PPAs expire between 2027 and 2043; expected average annual EBITDA contribution through 2027 of $8 million to $10 million
In 2013 through 2017, invested $25 million to enhance value of existing projects by increasing output, reducing costs and improving efficiency; compelling risk-adjusted returns